TEMA

TEMA is a unique smoothing indicator developed by Patrick Mulloy. It was originally introduced in the January 1994 issue of Technical Analysis of Stocks Commodities magazine.

As Mr. Mulloy explains in the article:
"Moving averages have a detrimental lag time that increases as the moving average length increases. The solution is a modified version of exponential smoothing with less lag time."

TEMA is an acronym that stands for Triple Exponential Moving Average. However, the name of this smoothing technique is a bit misleading in that it is not simply a moving average of a moving average of a moving average. It is a unique composite of a single exponential moving average, a double exponential moving average, and a triple exponential moving average that provides less lag than either of the three components individually.

Syntax:

TEMA
TEMA()
TEMA(“Period”)
TEMA(“OutPutStartCell”,”Period”)

Inputs:

'Close' column values

Parameters:

• Period (default=26)
• OutPutStartCell (default=the next blank column in the worksheet)

Examples:

TEMA
TEMA()
TEMA(“26”)
TEMA(10)
TEMA(“G2”,”26”)
TEMA(“G2”,26)
TEMA(G2,”26”)
TEMA(G2,26)